Precision Sheet Metal Fabrication

searcher profile

December 15, 2021

by a searcher in Illinois, USA

I am looking at a precision Sheet Metal Fabrication business perhaps with an option to invest in the beginning and then be an operator.

Would love to connect with anyone who has experience in acquiring and operating this business or can share some insights in this industry, challenges/risks in associated with it.
Thank you.

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commentor profile
Reply by an investor
from The University of Chicago in Chicago, IL, USA
Most important is to determine if the business has proprietary products or if alternatively, if it's a job shop. The latter is a far less attractive business - i.) no control over end user relationship; ii.) a never ending bidding process to solicit new work; and iii.) growth challenges. Take a look at the bid / award experience of the business and the number of individuals involved in the process - should tell you much of the growth challenge.
commentor profile
Reply by a searcher
from Butler University in Indianapolis, IN, USA
Happy to chat. I have bought three in the last five years and am in the process of rolling up another 2-3. We don’t look for proprietary products, but we do look for recurring contracts. Most of work repeats each month and as long as you mr quality and on time delivery is consistent the relationships with the OEM customers is pretty sticky.
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